Share via

The pound jumped against the dollar and the FTSE 100 tumbled after inflation
rose more than expected to its highest rate since June.

Sterling advanced to $1.606 against the greenback after the Consumer Prices
Index rose to 3.2 per cent in October, higher than the 3.1 per cent reading
forecast by economists. London’s leading index of blue chip shares was
trading 1.75 per cent lower at 5,718.18 by mid-afternoon trading.

The reading, which compares with 3.1 per cent in September, triggered a letter
from Bank of England Governor Mervyn King to Chancellor George Osborne. This
warned inflation is likely to